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Generative AI is rapidly transforming Canada's creative industries, offering powerful new tools for film, music, and art while raising critical concerns about copyright, job displacement, and authenticity. From Vancouver's VFX studios to Toronto's music scene, creators are grappling with this dual-edged sword. As artists and companies adapt, the Canadian government is responding with new policies to navigate the complex legal and ethical landscape. This technological shift forces a national conversation on balancing innovation with the protection of human creativity, defining the future of Canadian arts and culture.